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A New Frontier: ASBCA Issues First Ever CPAR Decision on the Merits

Client Alert | 1 min read | 06.24.19

On June 3, 2019, the ASBCA published its first ever decision addressing the merits of a CPAR evaluation – i.e., whether CPAR ratings were “fair and accurate” pursuant to FAR 42.15. In PROTEC GmbH (ASBCA Nos. 61161, 61162), the Board analyzed a CPAR’s factual assertions, compared them to the parties’ evidence of contract performance, and ultimately held that the CPAR was indeed “fair and accurate” due to the contractor’s noncompliance and poor performance. The Board also considered the contractor’s allegation of a procedural violation – i.e., that the Government failed to perform a CPAR review “at a level above the CO” as required by FAR 42.1503(d). The Board held that the contractor “lacked standing” to challenge the violation because it could not establish “prejudice,” i.e., that the CPAR rating would have been different without the violation.  

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Client Alert | 1 min read | 07.08.26

CAS Board Publishes Final Rule Rescinding CAS 404, 408, 409, and 4117

As part of its ongoing effort to conform the Cost Accounting Standards (“CAS”) to generally accepted accounting principles (“GAAP”), the CAS Board published a final rule rescinding CAS 408 (Accounting for costs of compensated personal absence) and CAS 411 (Accounting for acquisition costs of material).  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which will be located in new paragraphs of CAS 405 (Accounting for unallowable costs).  Specifically, the CAS Board retained the requirements currently located at CAS 404-50(d)(1), CAS 409-50(e)(5), CAS 409-50(j)(1), and CAS 409-50(j)(4), which the CAS Board explained are necessary to protect the Government’s interests.  Otherwise, the CAS Board determined that the requirements of CAS 404, 408, 409, and 411 overlapped with GAAP such that GAAP “may be applied reasonably as a substitute for CAS to support contract cost and pricing.”...

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